CFTC Develops AI Tools for U.S. Crypto Market Oversight

The Commodity Futures Trading Commission (CFTC) is advancing its use of artificial intelligence to enhance the review of registration applications and monitor trading in the U.S. crypto market. According to Odaily, CFTC Chairman Mike Selig highlighted the agency's efforts in an interview with CoinDesk, noting that AI and automation are being leveraged to address staffing reductions exceeding 20% due to federal government layoffs. Employees are currently being trained on Microsoft Copilot, and the CFTC is developing internal tools for swap data review and market surveillance. Selig also emphasized the significance of the joint digital asset classification guidelines released with the Securities and Exchange Commission (SEC), which aim to provide regulatory clarity for market participants. In the realm of prediction markets, Selig reaffirmed the CFTC's exclusive jurisdiction and stressed the agency's commitment to enforcing actions against violations such as insider trading.